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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2014
SEGMENT INFORMATION  
SEGMENT INFORMATION

3 - SEGMENT INFORMATION

 

The Company determines its operating segments based on the information utilized by the chief operating decision maker to assess performance.  Based on this information, the Company has two reportable operating segments, GS&T and Baltic Trading.  Both GS&T and Baltic Trading are engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.  GS&T seeks to deploy its vessels on time charters, spot market-related time charters or in vessel pools trading in the spot market and Baltic Trading seeks to deploy its vessel charters in the spot market, which represents immediate chartering of a vessel, usually for single voyages, or employing vessels on spot market-related time charters or in vessel pools.  Segment results are evaluated based on net (loss) income.  The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s condensed consolidated financial statements.  As a result of the adoption of fresh-start accounting on the Effective Date, the cost basis for certain of Baltic Trading’s assets were revalued and are reflected in the Baltic Trading balances in the segment information reported below.

 

The following table presents a reconciliation of total voyage revenue from external (third party) customers for the Company’s two operating segments to total consolidated voyage revenue from external customers for the Successor Company for the period from July 9 to September 30, 2014 and for the Predecessor Company for the period from July 1 to July 9, 2014, January 1 to July 9, 2014 and for the three and nine months ended September 30, 2013.

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from July 1
to July 9, 2014

 

Three Months
Ended
September 30,
2013

 

Voyage revenue from external customers

 

 

 

 

 

 

 

GS&T

 

$
34,699 

 

$
3,240 

 

$
49,503 

 

Baltic Trading

 
9,244 

 
794 

 
9,102 

 

Total operating segments

 
43,943 

 
4,034 

 
58,605 

 

Eliminating revenue

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$
43,943 

 

$
4,034 

 

$
58,605 

 

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from
January 1 to July 9,
2014

 

Nine Months
Ended
September 30,
2013

 

Voyage revenue from external customers

 

 

 

 

 

 

 

GS&T

 

$
34,699 

 

$
94,171 

 

$
121,755 

 

Baltic Trading

 
9,244 

 
24,588 

 
21,467 

 

Total operating segments

 
43,943 

 
118,759 

 
143,222 

 

Eliminating revenue

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$
43,943 

 

$
118,759 

 

$
143,222 

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the Successor Company for the period from July 9 to September 30, 2014 and for the Predecessor Company for the period from July 1 to July 9, 2014, January 1 to July 9, 2014 and for the three and nine months ended September 30, 2013.  The intersegment revenue noted in the following table represents revenue earned by GS&T pursuant to the management agreement entered into with Baltic Trading, which includes commercial service fees, technical service fees and sale and purchase fees, if any.

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from July 1
to July 9, 2014

 

Three Months
Ended
September 30,
2013

 

Intersegment revenue

 

 

 

 

 

 

 

GS&T

 

$
936

 

$
89

 

$
1,187

 

Baltic Trading

 

—

 

—

 

—

 

Total operating segments

 
936

 
89

 
1,187

 

Eliminating revenue

 
(936

)
(89

)
(1,187

)

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from
January 1 to July 9,
2014

 

Nine Months
Ended
September 30,
2013

 

Intersegment revenue

 

 

 

 

 

 

 

GS&T

 

$
936

 

$
2,156

 

$
2,563

 

Baltic Trading

 

—

 

—

 

—

 

Total operating segments

 
936

 
2,156

 
2,563

 

Eliminating revenue

 
(936

)
(2,156

)
(2,563

)

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

 

The following table presents a reconciliation of total net (loss) income for the Company’s two operating segments to total consolidated net (loss) income for the Successor Company for the period from July 9 to September 30, 2014 and for the Predecessor Company for the period from July 1 to July 9, 2014, January 1 to July 9, 2014 and for the three and nine months ended September 30, 2013. The eliminating net loss (income) noted in the following table consists of the elimination of intercompany transactions between GS&T and Baltic Trading, as well as dividends due to GS&T from Baltic Trading for its Class B shares of Baltic Trading.

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from July 1
to July 9, 2014

 

Three Months
Ended
September 30,
2013

 

Net (loss) income

 

 

 

 

 

 

 

GS&T

 

$
(18,823

)

$
976,569

 

$
(34,277

)

Baltic Trading

 
(3,675

)
(84,223

)
(2,270

)

Total operating segments

 
(22,498

)
892,346

 
(36,547

)

Eliminating net loss (income)

 
64

 
(5

)
429

 

Total consolidated net (loss) income

 

$
(22,562

)

$
892,351

 

$
(36,976

)

 

 

 

Successor

 

Predecessor

 

 

 

Period from July 9
to September 30,
2014

 

Period from
January 1 to July 9,
2014

 

Nine Months
Ended
September 30,
2013

 

Net (loss) income

 

 

 

 

 

 

 

GS&T

 

$
(18,823

)

$
878,127

 

$
(125,422

)

Baltic Trading

 
(3,675

)
(93,430

)
(11,979

)

Total operating segments

 
(22,498

)
784,697

 
(137,401

)

Eliminating net loss

 
64

 
140

 
465

 

Total consolidated net (loss) income

 

$
(22,562

)

$
784,557

 

$
(137,866

)

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated assets as of September 30, 2014 and December 31, 2013. The eliminating assets noted in the following table consist of the elimination of intercompany transactions resulting from the capitalization of fees paid to GS&T by Baltic Trading as vessel assets, including related accumulated depreciation, as well as the outstanding receivable balance due to GS&T from Baltic Trading as of September 30, 2014 and December 31, 2013.

 

 

 

Successor

 

Predecessor

 

 

 

September 30,
2014

 

December 31,
2013

 

Total assets

 

 

 

 

 

GS&T

 

$
1,447,684

 

$
2,404,811

 

Baltic Trading

 
478,951

 
557,367

 

Total operating segments

 
1,926,635

 
2,962,178

 

Eliminating assets

 
(36

)
(4,924

)

Total consolidated assets

 

$
1,926,599

 

$
2,957,254